WGU D076 Finance Skills for Managers |OA|
objective assessment Latest 2025 Update with
complete solutions
Simple Interest - -- CORRECT ANSWER IS ---The interest earned only on the principal.
Specialist - -- CORRECT ANSWER IS ---A market maker on the NYSE that holds an inventory of
securities and acts as a liquidity provider to those that wish to buy and sell.
Spontaneous Accounts - -- CORRECT ANSWER IS ---Accounts that vary naturally with sales.
Stakeholder - -- CORRECT ANSWER IS ---Anyone who may be affected by actions taken or a
decision made.
Standard Deviation - -- CORRECT ANSWER IS ---A measure of dispersion of possible outcomes
about the mean.
Steady State Growth - -- CORRECT ANSWER IS ---The level of growth where four key financial
ratios—profitability, asset utilization, leverage, and payout—are constant and where the firm
does not need to issue any new equity to fund the growth.
Stock - -- CORRECT ANSWER IS ---A share of ownership in a company.
,Sunk Costs - -- CORRECT ANSWER IS ---A cost that has already been incurred and cannot be
recovered.
Sustainable Growth Rate (SGR) - -- CORRECT ANSWER IS ---The growth rate that allows a firm to
maintain its present financial ratios without issuing new equity.
Syndicate - -- CORRECT ANSWER IS ---A group of intermediaries that is used to oversee the
issuance of stocks and/or bonds.
Systematic Risk - -- CORRECT ANSWER IS ---Risk that is inherent in the economy as a whole and
cannot be diversified away; also called market risk or nondiversifiable risk.
Tax Strategies - -- CORRECT ANSWER IS ---Methods used to minimize the amount of taxes a
business pays.
Teller - -- CORRECT ANSWER IS ---An entry-level commercial bank position with the
responsibility to interact with customers at the bank's front desk or drive-through window.
Time Value of Money (TVM) - -- CORRECT ANSWER IS ---The idea that money that is available at
the present time is worth more than the same amount in the future.
Accounting - -- CORRECT ANSWER IS ---The system of recording, reporting, and summarizing
past financial information and transactions.
Accounts Receivable Turnover (AR Turnover) - -- CORRECT ANSWER IS ---An activity ratio found
by credit sales divided by accounts receivable.
, Activity Ratios - -- CORRECT ANSWER IS ---A category of ratios that measure how well a
company uses its assets to generate sales or cash, showing the firm's operational efficiency and
profitability.
Additional Funds Needed (AFN) - -- CORRECT ANSWER IS ---Another name for the discretionary
financing needed or external financing needed. It represents the additional financing needed
given a firm's expectations for future growth.
Affirmative Covenants - -- CORRECT ANSWER IS ---A bond covenant that describes things the
company pledges itself to do in order to protect bondholders.
Agency Costs - -- CORRECT ANSWER IS ---Costs that are incurred when management does not
act in the best interest of shareholders.
Agency Problem - -- CORRECT ANSWER IS ---When the agent (the management) does not act in
the best interest of the principal (the owners).
Aggressive Assets - -- CORRECT ANSWER IS ---Companies or securities with beta greater than 1.
Annual Percentage Rate - -- CORRECT ANSWER IS ---The annual interest rate that is charged for
borrowing money or that is earned through investment.
Annuity - -- CORRECT ANSWER IS ---A stream of cash flows of an equal amount paid every
consecutive period.
Annuity Due - -- CORRECT ANSWER IS ---A series of equal payments made at the beginning of
consecutive periods.
Asset Pricing - -- CORRECT ANSWER IS ---The process of valuing assets.
objective assessment Latest 2025 Update with
complete solutions
Simple Interest - -- CORRECT ANSWER IS ---The interest earned only on the principal.
Specialist - -- CORRECT ANSWER IS ---A market maker on the NYSE that holds an inventory of
securities and acts as a liquidity provider to those that wish to buy and sell.
Spontaneous Accounts - -- CORRECT ANSWER IS ---Accounts that vary naturally with sales.
Stakeholder - -- CORRECT ANSWER IS ---Anyone who may be affected by actions taken or a
decision made.
Standard Deviation - -- CORRECT ANSWER IS ---A measure of dispersion of possible outcomes
about the mean.
Steady State Growth - -- CORRECT ANSWER IS ---The level of growth where four key financial
ratios—profitability, asset utilization, leverage, and payout—are constant and where the firm
does not need to issue any new equity to fund the growth.
Stock - -- CORRECT ANSWER IS ---A share of ownership in a company.
,Sunk Costs - -- CORRECT ANSWER IS ---A cost that has already been incurred and cannot be
recovered.
Sustainable Growth Rate (SGR) - -- CORRECT ANSWER IS ---The growth rate that allows a firm to
maintain its present financial ratios without issuing new equity.
Syndicate - -- CORRECT ANSWER IS ---A group of intermediaries that is used to oversee the
issuance of stocks and/or bonds.
Systematic Risk - -- CORRECT ANSWER IS ---Risk that is inherent in the economy as a whole and
cannot be diversified away; also called market risk or nondiversifiable risk.
Tax Strategies - -- CORRECT ANSWER IS ---Methods used to minimize the amount of taxes a
business pays.
Teller - -- CORRECT ANSWER IS ---An entry-level commercial bank position with the
responsibility to interact with customers at the bank's front desk or drive-through window.
Time Value of Money (TVM) - -- CORRECT ANSWER IS ---The idea that money that is available at
the present time is worth more than the same amount in the future.
Accounting - -- CORRECT ANSWER IS ---The system of recording, reporting, and summarizing
past financial information and transactions.
Accounts Receivable Turnover (AR Turnover) - -- CORRECT ANSWER IS ---An activity ratio found
by credit sales divided by accounts receivable.
, Activity Ratios - -- CORRECT ANSWER IS ---A category of ratios that measure how well a
company uses its assets to generate sales or cash, showing the firm's operational efficiency and
profitability.
Additional Funds Needed (AFN) - -- CORRECT ANSWER IS ---Another name for the discretionary
financing needed or external financing needed. It represents the additional financing needed
given a firm's expectations for future growth.
Affirmative Covenants - -- CORRECT ANSWER IS ---A bond covenant that describes things the
company pledges itself to do in order to protect bondholders.
Agency Costs - -- CORRECT ANSWER IS ---Costs that are incurred when management does not
act in the best interest of shareholders.
Agency Problem - -- CORRECT ANSWER IS ---When the agent (the management) does not act in
the best interest of the principal (the owners).
Aggressive Assets - -- CORRECT ANSWER IS ---Companies or securities with beta greater than 1.
Annual Percentage Rate - -- CORRECT ANSWER IS ---The annual interest rate that is charged for
borrowing money or that is earned through investment.
Annuity - -- CORRECT ANSWER IS ---A stream of cash flows of an equal amount paid every
consecutive period.
Annuity Due - -- CORRECT ANSWER IS ---A series of equal payments made at the beginning of
consecutive periods.
Asset Pricing - -- CORRECT ANSWER IS ---The process of valuing assets.
